First Horizon reported fourth-quarter net income available to common shareholders of $257 million, up 1% year-over-year, translating to fully diluted EPS of $0.52. On an adjusted basis, excluding $2 million of notable items, adjusted EPS remained $0.52, marking a 2% increase over third-quarter results. For full-year 2025, net income available to common shareholders rose 29% to $956 million, or $1.87 per share, a 38% EPS increase over 2024. Adjusted full-year EPS, excluding $12 million of after-tax notable items, was $1.89. These results outpaced consensus analyst estimates and reflect strong revenue generation and disciplined expense management across the Regional, Specialty and Corporate banking segments.

As of December 31, 2025, First Horizon held $83.9 billion in total assets with common equity tier 1 capital well above regulatory minimums, supporting ongoing share repurchases. The bank’s risk-weighted capital ratios exceed peers, and tangible common equity to tangible assets stood at approximately 7.2%. Credit quality remains robust, with nonperforming assets below 0.75% of loans and minimal commercial real estate exposure (under 5% of total loans). Deposit balances were stable, with core checking and savings deposits representing over 70% of total funding, and the loan-to-deposit ratio at 90%, underscoring funding resilience.

Management reiterated 2026 targets calling for 3%–7% revenue growth and an acceleration in loan originations driven by commercial and consumer segments, after modest loan growth in 2025. Capital deployment plans include $200 million of share repurchases and potential dividend increases, supported by a CET1 ratio projected above 10%. While provision coverage remains lean at 1.2% of loans, management cited disciplined underwriting and low charge-off trends as mitigating factors. Investors will monitor reserve build plans and emerging loan demand indicators to assess balance sheet momentum through 2026.